Musk's SpaceX-Tesla merger plan raises investor concerns

Elon Musk's plan to merge SpaceX and Tesla would create a $3.5 trillion AI-industrial conglomerate, concentrating vast technological and financial power under his control. The proposal is under review by independent director committees, with no terms finalized yet. Musk holds 85% voting control at SpaceX but only about 20% at Tesla, and analysts estimate he could gain 56% voting power in a combined entity while owning just 37% of its equity. The merger follows SpaceX's absorption of xAI and a $2 billion Tesla investment in that firm, raising concerns about reduced oversight of capital allocation. Critics point to Musk's past actions, including diverting Nvidia processors from Tesla and the contentious 2016 SolarCity acquisition, as evidence of risky decision-making. The deal could also create conflicts for governments reliant on SpaceX services like Starlink and Starshield.